Welcome to the March issue of ACM Capital Partners’ Value Line newsletter. In this issue you will find details of three new engagements – a quality of earnings study for a $330M public oil and gas company, an operational assessment assignment for a $20M medical engineering company; and the closing of a new bridge facility for a client through our ACM Capital Fund I affiliate.
ACM RETAINED FOR QUALITY OF EARNINGS REPORT FOR $330M PUBLIC COMPANY
The firm was retained by a debt fund to perform a quality of earnings report on a $330M public oil and gas company located in the Western U.S. We received a call from the client and our professional hit the ground the next business day to commence this difficult assignment.
Poor accounting records and questionable management activity led our team, after discussions with the client, to modify the scope of the work. Within three weeks, the report was delivered to our client. As a result of ACM’s expanded report, our client was better informed and positioned to close the transaction.
“We have added three directors in the last six months all of whom have extensive experience with quality of earnings reports and valuations. This area has become a growing part of our practice and for good reason,” said Jim Martin, Managing Partner.
ACM ENGAGED TO PERFORM OPERATIONAL ASSESSMENT FOR $20M MEDICAL ENGINEERING GROUP
ACM has been retained to provide an operational improvement and profitability analysis for a medical engineering group located in Central Florida. This two phase project includes an assessment of the business model and strategy as well as customer profitability. Once Phase I is completed, ACM and the client will jointly agree on the scope for Phase II which will include the implementation of our findings.
“This is the third operational assessment we have done in the last four months,” said Kevin Henry, Director of Business Development. “We have been very successful in quickly diving into the core issues and providing management with key areas of profitability enhancement during the Phase II implementation. This client is a classic example of what we see in the market place. This is a 30 year old company that has become stagnant and needs a fresh set of operational eyes to guide them through.”
ACM DEBT FUND PARTNERS WITH ACM CAPITAL TEAM TO ASSIST PAYMENT PROCESSING CLIENT
The firm reported last month that it had been retained to assist a payment processor with identifying and quantifying the extent of a suspected employee theft. During the months of February and March, our professionals stepped in and identified the occurrence of theft over a three-year period. We documented the theft and reported it to the client’s insurance carrier. Due to the enormity of the theft, the client experienced a working capital shortfall. ACM Capital Fund I stepped in and funded the cash need until the insurance proceeds were recovered – which occurred in late March.